Acquisition Adds Innovative AI-powered Non-Identifier Platform Capabilities for Mobile Gaming and Non-Gaming Companies
Dataseat is a small team DSP startup that is amplifying the demand side of MGI and further accelerating the MGI flywheel as more advertisers lead to more publishers on the company’s software platform
The small but positive acquisition results in immediate synergies for MGI’s advertising partners, including the gaming studios
VALLETTA, MALTA / ACCESSWIRE / July 5, 2022 / Media and Games Invest SE (“MGI” or the “Company”, ISIN: MT0000580101; Ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange, OTCQX:MDGIF), today announced it has acquired the mobile demand side platform (DSP) start-up Dataseat Ltd (“Dataseat”), further expanding the technical capabilities of the company’s advertising software platform.
Dataseat, a fledgling UK-based company, is an innovative, technically advanced and fast-growing mobile DSP, specializing in future-proofing user acquisition using contextual signals rather than device identifiers. Dataseat offers mobile app developers and game publishers the ability to efficiently reach new audiences in a privacy-first manner.
Dataseat was founded in 2018 by ad-tech veterans David Philippson and Dr. Paul Hayton, who previously founded Ad-X Tracking, one of the first mobile measurement partners, before selling it to Criteo in 2013. Both founders have agreed to join the MGI. team and offer their valuable expertise to help Dataseat reach its full potential.
Dataseat is specifically aimed at supporting medium to large-sized gaming companies by leveraging contextual cues, without any reliance on device IDs or other user profiling. Dataseat gives advertisers complete control, transparency and adaptability over their campaigns in a world where identifiers like IDFA are being deprecated. Dataseat relies on artificial intelligence to optimize campaigns by making full use of contextual signals, eliminating the need for a third-party ID.
Founded just four years ago, Dataseat has developed a unique and proven set of technologies that have been able to generate consistent results and scale for both Tier 1 games and non-game app advertisers.
A small acquisition that speeds up the flywheel – more advertisers lead to more publishers:
As part of MGI’s advertising software platform, the Dataseat DSP will now have direct access to MGI’s strong first-party content and data, including a game portfolio of more than 800 million users and its Software Development Kit (“SDK“) which is integrated into more than 20,000 apps, giving access to 2 billion mobile users. This, combined with other media businesses and customers of MGI’s ad-tech offerings under the Verve brand, will enable Dataseat to further accelerate its growth rate. .
By integrating Dataseat into MGI’s media offering, the advertising software platform becomes even more attractive to games and app-first advertisers. In addition, there will be a positive impact for MGI’s own mobile game studios, including the recently acquired studio AxesInMotion. The acquisition will immediately increase the number of advertisers from the games sector.
Scaling up the demand side of MGI with forward-looking technology – ticking further boxes in the ad value chain:
Dataseat will bolster MGI’s DSP segment (User Acquisition for Advertisers), which currently generates 7% of the company’s revenue, while the offering platform (“SSP“) segment (generating publisher advertising space revenue) currently accounts for 93% of group revenue.
To cover the high volume in the SSP segment, MGI is currently partnering with several other DSPs, allowing the company to match an already strong supply (publishers) with the right level of demand (advertisers). Boosting direct demand will lead to further efficiencies for advertisers, better results for publishers and a higher overall margin for MGI. The forward-looking focus on targeting without using identifiers also adds a strong USP to MGI’s offering.
Attractive deal structure – low initial investment and highly contingent deferred payments:
Founded in 2018, Dataseat is a young DSP start-up with a small team of 25 employees, which has already shown strong organic growth potential. Revenues for 2022 are expected to be in the mid-single digit million range (GBP) and for 2022, management expects Dataseat to break even at the EBITDA level, while it plans to continue investing in growth and growth and accelerate economies of scale. The purchase price consists of (i) a fixed component in the high single-digit range of GBP million, (ii) a contingent deferred purchase price linked to the retention of the founders, as well as (iii) a performance-based long-term earn-out component. The fixed upfront component will be paid in cash, while the deferred and earn-out components can be paid in cash or in shares. If the deferred payment is made in cash, payment will be made within 18 months of closing and in all other cases, including deferred and earn-out components, payments will be made within 36 months. The parties have agreed not to disclose further details of the purchase price.
Dataseat is acquired by Verve Holding GmbH, a wholly owned subsidiary of MGI.
The information contained in this release has been made public through the intermediary of those responsible at MGI as set forth below for publication at the time specified by MGI’s news distributor EQS Newswire at the time of publishing this release. For more information, please contact the responsible persons below.
For more information, please contact:
Jenny Rosberg, ROPA, IR contact Stockholm
Axel Muhlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
+49 69 9055 05 51
About Media and Games Invest SE
Media and Games Invest SE (“MGI”) is an advertising software platform with strong first party games content. MGI’s main operational presence is in North America and Europe. The company combines organic growth with value-generating synergistic acquisitions, which have shown continued strong profitable growth with a revenue CAGR of 77% (2018-2021). In addition to strong organic growth, the MGI Group has successfully acquired more than 35 companies and assets over the past 6 years. The assets and businesses acquired have been integrated and include active use of cloud technology to achieve efficiencies and competitive advantages. MGI is registered as Societas Europaea in Malta (registration number SE 15) and its shares are listed on Nasdaq First North Premier Growth Market in Stockholm and in the Scale segment of the Frankfurt Stock Exchange. The company has two covered bonds that are (or will be) listed on Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market.
The company’s certified advisor on Nasdaq First North Premier Growth Market is FNCA Sweden AB; [email protected], +46-8-528 00 399.
SOURCE: Media and games Invest SE
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